Answer:
The contribution margin per unit is 0.98$
Explanation:
![Sales \: Revenue - Variable \: Cost = Contribution \: Margin](https://tex.z-dn.net/?f=Sales%20%5C%3A%20Revenue%20-%20Variable%20%5C%3A%20Cost%20%3D%20Contribution%20%5C%3A%20Margin)
<em>4.25 revenue</em>
1.75 copo paper
1.18 shipping cost
.34 sales commision
<em>3.27 total variable cost</em>
Contribution 4.25 - 3.27 = 0.98
The contribution margin per unit is 0.98$ This is what is left after paying the variable cost.
Answer:
An increase in sale for 90 units, will increase the net income for 1$,170
Explanation:
<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>
So we simply multiply the contribution per unit by the increase in sale.
Contribution Margin x Δ sales = Δ income
13 x 90 = 1,170
Each unit contributes with 13 additional income, there are 90 additional units
Total income added 1,170
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Answer: $492,515
Explanation:
Total Paid-In Capital:
= 12,100 shares of common stock at $15 par + Paid in capital in excess of par -Common Stock + Paid in capital from Sale of treasury stock
= $181,500 + 14,520 + 7,800
= $203,820
Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury stock
= $203,820 + 300,000 - 11,305
= $492,515